The market response of insider transferring trades and firm characteristics in Taiwan
AbstractThis paper reports the announcement effects of insider transfer trades and relates these with firms' characteristics. Regulations in Taiwan specify that insiders give three days prior notice to the competent authority of stock transfers and this news can stimulate market participants' investment decisions. We find both the positive and negative abnormal returns exist following insider transfer trade announcements, especially for smaller firm. However, smaller firm sizes associate with larger magnitudes of negative abnormal returns. Furthermore, the connection between smaller firms and those with higher book-to-market ratios strengthens for larger negative abnormal returns.
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Bibliographic InfoArticle provided by Elsevier in its journal Emerging Markets Review.
Volume (Year): 16 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/inca/620356
Insider trading; Size effect; Value effect; Emerging market;
Find related papers by JEL classification:
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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